ERP for Cable Industry: Optimize and Automate Production
As of the present day, the cable industry faces several pain points and bottlenecks. Enterprise Resource Planning (ERP) systems offer potential solutions to address some of these challenges.
Here are some of the major pain points and how ERP is a relevant solution
Cord-Cutting Trend:
The cable industry is experiencing the ongoing trend of cord-cutting, where consumers are increasingly opting for over-the-top (OTT) streaming services. ERP systems help cable companies analyze customer data more effectively, allowing them to understand customer preferences and viewing habits. This information enables providers to tailor their content offerings and pricing structures to better retain customers and attract new ones.
High Programming Costs:
Cable companies are facing escalating costs for acquiring programming content from media networks and production studios. ERP solutions facilitate better cost management and vendor relationship management, allowing providers to optimize procurement processes and negotiate better deals with media networks to mitigate the impact of rising programming costs.
Competition from OTT Services:
OTT services like Netflix, Hulu, Amazon Prime Video, and others continue to pose significant challenges to the cable industry. ERP systems enable cable companies to streamline operations, reducing overhead costs and improving efficiency. This, in turn, allows providers to offer more competitive pricing and better content packages to compete with OTT services.
Outdated Business Models:
The cable industry is adapting to changing consumer demands for more flexibility in content consumption. ERP systems help cable companies transition to more dynamic business models, implementing agile billing systems and customizable service offerings to meet modern consumers’ preferences.
Regulatory Challenges:
Cable companies continue to face regulatory challenges related to net neutrality, local franchising, and spectrum allocation. ERP solutions with compliance management features assist cable providers in navigating the complexities of regulatory requirements to ensure adherence to relevant regulations.
Infrastructure and Technology Limitations:
Cable providers are still working on keeping up with the increasing demand for higher internet speeds, especially in areas with older infrastructure. ERP systems assist in optimizing network operations and resource allocation, allowing cable companies to identify areas for improvement and make informed decisions on network upgrades.
Customer Service Issues:
The cable industry strives to improve customer service processes. ERP systems with customer relationship management (CRM) capabilities enhance customer support, enabling faster response times, personalized interactions, and accurate billing to improve overall customer satisfaction.
Content Piracy:
Content piracy and illegal streaming remain challenges for the cable industry, impacting their revenue and enforcing copyright laws. ERP systems with robust digital rights management (DRM) features help protect content from piracy, safeguarding revenue streams for cable providers.
Satellite and Fiber Competition:
The cable industry faces fierce competition from satellite TV providers and fiber-optic internet providers. ERP systems assist cable companies in analyzing and responding to market trends effectively, identifying areas of competitive advantage, and optimizing service offerings to better compete.
Shift to Mobile and On-the-Go Viewing:
With the increasing use of mobile devices, consumers expect seamless viewing experiences across various platforms and devices. ERP systems with multi-platform support enable cable providers to deliver a smooth viewing experience on-the-go.
Advertising Revenue Decline:
Traditional cable advertising revenue continues to decline as viewers shift to on-demand and ad-free streaming options. ERP systems with advanced analytics capabilities help cable companies better target advertisements to relevant audiences, maximizing ad revenue.
Political and Social Pressures:
The cable industry faces political and social pressures regarding content censorship, diversity, and representation. ERP solutions help cable companies manage content creation and distribution, ensuring compliance with regulatory standards and societal expectations.
Evolution of Content Consumption:
Consumers increasingly seek personalized and niche content, challenging the traditional one-size-fits-all approach of cable packages. ERP systems enable cable providers to analyze viewer data and preferences, offering personalized and niche content packages to meet individual customer demands.
By adopting ERP systems and leveraging their capabilities effectively, the cable industry can address some of its pain points and bottlenecks more efficiently. ERP implementation supports the industry in becoming more agile, data-driven, and customer-centric, leading to enhanced competitiveness and sustainability in the ever-evolving media landscape. However, it’s essential to note that the information provided here is based on a knowledge cutoff in September 2021, and it is advisable to consult more recent sources for the latest developments in the cable industry and the applicability of ERP solutions.